Service of documenting currency transactions from Law & Trust International

Date added: : 31.03.2017

When transaction certificate is issued or reissued?
When is it necessary to submit currency control form?
What are the cases in which the transaction certificate is revoked and the certificate on supporting documents is submitted to the bank?

Information about transaction certificate

The transaction certificate is issued when conducting currency transactions between non-residents and residents and is mandatory document. It is issued in the bank, through which the settlements are made under the contract or part of them. Registration of the transaction certificate is carried out through the territorial department of the Bank of Russia according to the legal address of the organization, if the payments go through accounts which are (are opened) in banks outside the territory of the Russian Federation.

The bank is not obliged to inform about the need to issue the Transaction Certificate, and it is the resident's task.

The transaction certificate is issued if the following conditions are simultaneously met:

Resident and non-resident have general agreed contract, preliminary contract, offer for concluding contract, or draft contract providing for:

Further, the bank verifies the application submitted by the resident for revoking the transaction certificate, and the consideration period does not exceed (should not exceed) 3 working days. When processing, the completeness of the submitted documents is verified, and compliance with the grounds for revoking the TC containing in the submitted documents.

It is possible for the bank to independently revoke the TC after the expiry of 180 calendar days from the date of completion of the obligations under the contract. The main reasons are the following:

all the obligations under the contract were executed or terminated and the application for revoking the transaction certificate was not submitted by the resident;

For the purpose of revoking the Transaction Certificate, the bank is provided with the application to revoke the TC. In the application, it is possible to report on several revoked PCs. The very form of the application has only the indicated mandatory information, and it is not laid down in the Instruction.

Therefore, there are two options. The first option suggests asking for sample in your bank, and the second option is to compile the application in free form by yourself and indicate there all the mandatory information listed in paragraph 7.2 of the Instruction-138-I of the Bank of Russia.

Documents with varying composition shall be submitted, which depends on the reason for revoking the Transaction Certificate:

Documents confirming the absence or the termination of grounds/reasons due to which the registration of the PS is necessary; Certificate on supporting documents, as well as documents containing information proving that the obligations under the contract are being fulfilled or terminated; Documents confirming the assignment of the claim under the contract to another resident person.

In order to reissue the transaction certificate, it is necessary to submit to the bank the application for the reissuance of the TC and the documents, information from which will be used as basis for making changes. The information on the resident, the essential element(s) of the Transaction certificate, the content of the changes, the date of signing by the resident of the application for reissuance of the TC, the section of the transaction certificate into which changes are made shall be indicated.

The process of revoking the Transaction Certificate

The main reasons for revoking the TC are listed below:

Transfer from one bank to another in connection with the transfer of the service contract to another authorized bank, and also if the resident closes all settlement accounts in the bank of the TC; Fulfillment of all obligations under the contract by the parties; If the resident has made some concessions regarding the requirements under the contract to another resident person, or when transferring debt under a contract by resident to another resident person; When the resident concedes the contractual requirement to the non-resident; When executing (terminating) obligations under the contract according to the other grounds not specified above, but stipulated by the legislation of the Russian Federation; If the grounds requiring the registration of the TC, including due to appropriate changes or additions to the contract, are terminated, as well as in the event of the erroneous issuance of the Transaction Certificate in case of actual absence of grounds requiring its issue in the contract.

What cases require the reissue of the Transaction Certificate and what are the means to carry out the foregoing?

TC is reissued in the following cases:

If changes were made to the contract which affect the information reflected in the TC, or the data specified in the Transaction Certificate itself was modified. In this case, the term for reissuance of the TC should be limited to 15 working days from the date of the relevant changes; If the information about the organization was changed. In this case, the term for reissuance of the TC should be limited to 30 working days from the date of the relevant changes in the Unified State Register of Legal Entities.

- conducting currency transactions related to settlements through accounts of the residents which are opened in the authorized banks;
- acquiring, selling, rendering services which are associated with purchase or sale of bunker fuel (relates to fuel and lubricants) in the territory of Russia and beyond its borders. Also, the list can include food products, material and technical reserves, and other commodities (except for equipment and spare parts);

- providing operation and maintenance regardless of their type and destination on the route or in the parking points or intermediate stops;
- participating in securing operation and maintenance of transport, regardless of its type or destination on the route, as well as points intended for intermediate parking or stops;
- performing operations, rendering services, transferring information or results of intellectual activity, taking into account exclusive rights to them;
- transferring of movable, immovable property under financial lease agreements or financial leases;

Given the value of liabilities under the contracts, it is equal to or exceeds the equivalent of 50,000 US dollars.

For the purpose of issuing the Transaction Certificate (abbreviated as TC), one copy of the TC corresponding to Form 1 (for loan agreements - form 2 is relevant) in accordance with Annex 4 to the Instruction 138-I of the Bank of Russia shall be provided to the bank. It is also necessary to provide the contract or the extract from the contract, containing information which facilitates the process of registration of the TC. When providing only draft agreement, it should be submitted to the bank no later than 15 days (working days) from the date of signing the contract.

Currency control form

Currency control form (CCF) shall be submitted to the bank in the next cases:
- During income of foreign monetary transactions on transit currency account;
- Once foreign currency is written down to operating account;
- During payment by a L/C
- During process of execution of monetary transactions through operating roubel account of resident.
- During execution of transactions using banking card, when the TC is issued.

The object of CCF execution belongs to the residents and it shall be submitted along with other documents. Due to CCF, organization announces about amount of monetary operation and about essential elements of the documents which are connected to its execution. Also it helps to specify the term of execution of non-resident’s obligations, for example during execution of advanced payments.

Currency control form and other documents belonging to that operations shall be submitted to the bank within specified terms. Fines for legal persons are much higher then in case of penalties concerning TC:
- for official body the fine equals to 4000-5000 RUB.
- for legal persons the fine equals to 40000-50000 RUB.

Certificate on supporting documents

The requirements of the Instruction No. 138-I of the Bank of Russia for execution, modification or termination of obligations under the contract, for which the TC was issued, provide that the resident undertakes to submit to the bank, within predetermined period of time, the certificate (one copy) on supporting documents (SPD) and the following confirming documents:

-If the goods are imported or exported "from" or "to" the territory of the Russian Federation, subject to the set requirement to declare and implement their declaration by means other than filing declaration for goods, there should be the document used as declaration for goods;
-If the goods are imported or exported "from" or "to" the territory of the Russian Federation, subject to the set requirement for declaring. The foregoing implies transport (carriage, bill of lading), commercial document, and statistical form of accounting for the movement of goods.

- When performing operations, rendering services, transferring information and results of intellectual activity - acceptance and delivery certificate, bill, tax invoices or commercial documents which are executed under the contract;
-with other performance (termination, modification) of obligations under the contract - other documents confirming the relevant execution (termination, modification) of the obligation under the contract, and the number of documents which the resident uses to account for his business operations.

Observance of all requirements and rules regarding changes in currency legislation will unequivocally protect from penalty and eliminate the possibility of being fined.

Since 2016, the period of prescription for bringing to responsibility regarding violation of the currency legislation of the Russian Federation and acts of the authorities of currency regulation has been enhanced. Now it is two years from the date of committing administrative offense (Article 4.5 of the Code of Administrative Offenses of the Russian Federation).

For more detailed information regarding the foregoing issue, and if you are interested in this service, please, apply for the lawyers of Law & Trust International. Consultations are possible by phone, chat or during personal conversation in the offices of the company.

If not all obligations under the contract were fulfilled and the resident did not submit documents and information on the basis of which the bank carries out or maintains bank control list within 180 calendar days.

NB! If the currency legislation is violated, serious fines are imposed. For example, given the violations in the registration of the TC, legal entities and officials will have to pay the fine in the amount of 4000 to 5000 rubles.

The main legislative document of currency control is the instruction of the Bank of Russia as of 04.06.2012 N 138-I "On the procedure for submission of documents and information related to conducting currency transactions to the authorized banks by residents and non-residents, the procedure for issuing transaction certificates, as well as the procedure for accounting of currency transactions and control over their conducting by the authorized banks".